Parmalat Is Now Attractive Takeover Target

Italian dairy company Parmalat has played little part in the ongoing round of consolidation within the European dairy sector. This has seen the firm lose ground to some of its rivals and poses questions about the competiveness of the firm over the longer term. This is turn has to led to speculation that the company may be bought by one of its larger competitors, which has had a positive impact on the firm's share price since the start of 2011 (see chart). An alternative scenario is that the firm makes use of its considerable cash reserves to expand through acquisitions.

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